Hong Kong Market Reopens for U.S. Beef, Expanding Export Opportunities

Agriculture Secretary Tom Vilsack today announced that the United States and Hong Kong have agreed on new terms and conditions that pave the way for expanded exports of U.S. beef and beef products to Hong Kong.


"This is great news for American ranchers and beef companies," said Vilsack. "Hong Kong is already the fourth largest market for U.S. beef and beef product exports, with sales there reaching a historic high of $823 million in 2013. We look forward to expanded opportunities there for the U.S. beef industry now that all trade restrictions are lifted," Vilsack said.


Under the new terms, Hong Kong will permit the import of the full range of U.S. beef and beef products, consistent with access prior to December 2003. The new terms are effective this week. Previously, only deboned beef from all cattle and certain bone-in beef from cattle less than 30 months of age could be shipped from the United States to Hong Kong. Earlier this year, Mexico, Uruguay, Ecuador and Sri Lanka also lifted their longstanding restrictions to provide full access for U.S. beef and beef products.

What is not being said by USDA is the importance of Hong Kong as the unofficial BACK DOOR into the world's most populous country, China.  Many of the loads of beef that will be sold to Hong Kong may well be consumed in China- giving us a presence in the country that has frustrated the US beef industry with their reluctance to accept US beef direct.     

Click Here to read the rest of the article.  

Everywhere you look higher prices for our beef and cattle prices, box beef trade has been moving higher, feedlot prices stronger, yearling prices on the upside, calf prices also higher on the southern plans. K-State Livestock Market Economist Glynn Tonsor says says there is some optimism out there in cattle country pushing the market higher.


"The main drivers underneath all of that is growing optimism within the cattle industry that we're going to have a decent corn crop, coupled with we already know that supplies are tight but every signal we get reaffirms it and I think there is growing belief that demand is stable," Tonsor said.


That strong consumer demand is being bid into cattle prices - calves, yearling or feedlot cattle. Tonsor says right now the beef demand equation is a pleasant surprise.


"I think its important for our listens to recognize among the many things that trade does is that it allows us to send different products to the highest valued market, not just the whole carcass," Tonsor said. "The reason that is important as people are concerned that as we reduce what's available that people will step away from purchasing and that is probably the case for certain products."


Tonsor is known for his careful tracking of feedlot profitability - red or black ink. He says right now there is a lot of black ink flowing across the southern plains.

Click Here to read more or to listen to Glynn Tonsor.  

Senator Debbie Stabenow (MI), Chairwoman of the U.S. Senate Committee on Agriculture, Nutrition and Forestry, today applauded the U.S. Department of Agriculture for moving forward with a new vaccine expected to help combat the porcine epidemic diarrhea virus (PEDv), which has killed millions of pigs and devastated pork producers across the country. USDA announced that it has issued a conditional license for the first vaccine to treat PEDv to aid in control of the virus. These licenses are issued for controlling diseases in animals based on an expectation of efficacy. Stabenow, alongside Sen. Kay Hagan, urged USDA Sec. Tom Vilsack in March to dedicate funding to help develop a vaccine, and for other measures that provide relief to affected producers.

"I applaud USDA for their continued commitment to combatting the spread of this deadly virus, which has impacted pork producers in Michigan and across the country," Stabenow said. "The unmitigated spread of this virus not only threatens pork producers, but also has serious implications for the economy as consumers and businesses will all feel the impact of diminishing swine herds. USDA's efforts to help control the spread of the virus will go a long way in stabilizing the potential fallout for consumers and businesses and I'm pleased they have been aggressive and committed to finding a vaccine."

The unmitigated spread of PEDv poses a serious threat to the agricultural economy as the pork industry supports nearly 550,000 jobs across the country and contributes $34.5 billion to the U.S. economy.

Oklahoma Weather Leaves Available Nutrients In Limbo

The impact of weather has been severe for Oklahoma's winter crops. The state's wheat and canola crops have battled drought, freeze damage and just recently the state has seen widespread rains. With that combination, Oklahoma State University Assistant Professor of Precision Nutrient Management Brian Arnall says these crops hasn't maximized the use of fertilizer and soil nutrients.


"For the big part of what we've seen with the crop going to harvest is there has not been a big use of the nutrients put in the ground," Arnall said. "The pre-plant had some response across locations, much of the top dress never made it into the crop much less made it into the soil."


"If the summer crop is on a failed piece of wheat ground or failed canola ground we're likely doing well on nutrients, however if you have coming in after summer crop after summer crop or you aren't going into failed grounds, with this current moisture there's a lot of guys are starting to see a lot of definicencies, " Arnall said.

To read or to listen to more with Brian Arnall Click Here.   

Glenn Selk, Oklahoma State University Emeritus Extension Animal Scientist, writes in the latest Cow-Calf Newsletter.


Fall born replacement heifers have been (or soon will be) weaned and will be at a very critical growing period. It is important that they grow at about 1.5 pounds per day from weaning until the start of the breeding season. Central and Eastern Oklahoma has been fortunate to receive spring rains and in some cases will produce adequate forage quantity for the cow herd and the replacement heifers. Currently summer pastures are green, growing, and adequate in protein content. However, warm season pastures such as native grass or bermudagrass can be expected to be declining in forage quality in the hot, dry days of July, August, and September. Also these grasses will be reaching plant maturity which accelerates the decline in protein content.


Therefore, the young heifers must receive supplemental protein to continue to grow at the necessary pace of 1.5 pounds per head per day going into their first breeding season. An economical solution would be to give these heifers 1.5 to 2 pounds per head per day of the protein supplement called Oklahoma Gold. This is an OSU-developed protein supplement scheme that consists of a high protein (38% - 45%) pellet that contains the label-recommended dosage of one of the ionophores. Ionophores are feed additives (monensin or lasalocid) that improve feed utilization, inhibit coccidiosis, and enhance the onset of puberty in growing heifers.  

 For more about protein supplements for heifer Click Here.  

There are 314 items up for sale in this week's Big Iron auction.  You can find full details of each item and view numerous pictures by clicking here.  Items begin closing today at 10 a.m. and continue until everything is gone.

If you'd like more information on buying and selling with Big Iron, call District Manager Mike Wolfe at 580-320-2718 and he can give you the full scoop.  You can also reach Mike via email by clicking here. 

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Oklahoma's Ag in the Classroom team is out in No Man's Land showing off Oklahoma agriculture to teachers from down state. Dana Bessinger leads the AITC effort and she offers an overview of what these 44 teachers saw yesterday in Day One of their Panhandle tour.

"Our first stop was the Beaver County Fairgrounds where we were met by Loren Sizelove and Liz McBee, OSU Extension educators. Dr. Pauline Hodges visited with the group about the Dust Bowl days. The teachers were mesmerized by her. She is Mark Hodges's mom. Next we headed to the Beaver River and saw a science experiment done by the NRCS with the invasive Salt Cedar.  

"Lunch was in Hooker. We made a visit to G÷Ag Pioneer Seed where we saw amazing technology and irrigation. The Grewell's were harvesting wheat and we were up close in the field.
On down the road Robert Bergner hopped on the bus and gave us a tour of Hitch I Feedlot.   

"Rick Kochenower gave us a tour of the Panhandle Research Station and we ended the day making ice cream in a bag on the beautiful campus of OPSU.  

"All along the way we had plenty of cold water provided by Chisholm Trail Farm Credit. "

Thanks Dana- and as they say- the wheels on the bus go round and round- and we are hopeful that she will find wifi this evening to give us a day two report.

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Rich Nelson with Allendale has dropped us a note on the upcoming Cattle on Feed report- due out this Friday afternoon- and he offers his group's take on this latest bovine count:

"May Placements are expected to be 7.9% lower than last year. USDA's cattle feeding margin ended the month with $146 per head profits on outgoing cattle. While there are still profits on outgoing cattle, feedlots are showing resistance against high priced feeders. These are penciling losses of $150 to $250 per head. Corn averaged $4.97 in Western Kansas in May ($5.02 in April, $6.98 in May 2013). May placements help supply the October through January slaughter period.

"Allendale anticipates a Marketing total 8.1% lower than May 2013. There was a 3.7% calendar day adjustment this month. This would be the smallest May Marketing in the current data that goes back to 1996. The bulge in Marketings expected in June and July is now in question. Either feedlots are holding market ready numbers back or USDA's winter placement data was incorrect.

"Total Cattle on Feed as of June 1 now totals 1.1% under last year."   

The report will be released at 2:00 PM central time on Friday.